Will Scott Base rebuild offer boost to flagging Christchurch economy?

Wednesday, 19 June 2019

Six to 10 construction companies will tackle the upcoming rebuild of Scott Base in Antarctica, which is expected to take eight years and cost as much as $290 million.

Big projects in the pipeline could offer Christchurch's economy a significant boost, helping offset a slowdown in economic growth and rise in unemployment.

A new report from ChristchurchNZ shows the city's economy is growing at half the national rate, and unemployment is at its highest for seven years as the rebuild slows.

As much as $290m could be spent rebuilding Scott Base.

However, some major upcoming spending could have spin-offs for the city and the Canterbury region.

Opportunities include close to $1 billion of work at Antarctica, innovations in the transport, space, technology and agriculture sectors, and local construction projects.

Canterbury Employers Chamber of Commerce chief executive Leeann Watson sees Christchurch as an industry base for new innovation

A driverless shuttle being tested at Christchurch Airport last year.

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The US government has approved spending to replace McMurdo Station.

David Kelly, chairman of the Construction Industry Council, said between six and 10 local construction companies were large enough to tackle the upcoming rebuild of Scott Base in Antarctica.

An announcement within weeks from foreign minister Winston Peters will reveal details of Antarctica New Zealand's rebuild of the facility, which is expected to take eight years and cost as much as $290 million.

Construction Industry Council chairman David Kelly says up to 12 Christchruch contsruction companies are big enough to take on the Scott base rebuild.

Scott Base redevelopment manager Simon Shelton said this week that procurement for a main contractor will begin in coming months.

Also coming up is the $600m rebuild of America's Antarctic facilities, including McMurdo Station's 100 buildings. While the work will be done mostly by US companies, there are expected to be roles for New Zealanders.

Flying taxis have been tested in Canterbury.

Christchurch businesses including hotels and eateries are expected to get a spin-off from both countries' projects, as the city is one of just five Antarctica gateways and the only one in New Zealand.

Among its benefits are a long airport runway, existing servicing of Antarctic ships at Lyttelton, and 3000 hotel rooms on offer with another 1000 due to be finished by 2022.

Meanwhile with an eye to the rebuild tailing off, ChristchurchNZ has identified four areas offering the city growth possibilities - future transport and aerospace, high-tech services, health technologies, and food, fibre and agri-tech.

Early examples include the testing of a driverless shuttle at Christchurch airport and air taxis at Tekapo, and interest in testing other autonomous vehicles in the red zone.

This year the New Zealand Aerospace Challenge to be held in the city will explore ways of identifying pollution and aiding horticulture using satellite and drone technology.

ChristchurchNZ chief executive Joanna Norris said the city had no choice but to transform its economy by focusing on areas for growth.

'Relying on construction is not going to sustain the economy long-term,' she said.

'We're looking at areas of the economy where there are global growth opportunities.'

The organisation hoped this would lead to attracting international companies and investment, as well as boosting existing local businesses, Norris said.

Leeann Watson, chief executive of the Canterbury Employers Chamber of Commerce, said the city was in a very good position to take advantage of emerging industries.

'We are starting to see some signs of an economic slowdown, but there are also some very positive signs.'

Watson said because of the rebuild, the city could respond and adapt better to new ideas than the rest of New Zealand.

'We are really seeing Christchurch being used as an industry base for new innovation. We're in a position to grasp these opportunities and take them forward.'

ChristchurchNZ's economic report puts the city's unemployment at five per cent, compared with 4.4 per cent nationally, with the average weekly pay packet of $1037 also lagging behind national levels.

Construction in the city is at its lowest level for five years, according to the report, but still ahead of pre-quake levels.

Watson said major building projects such as the metro sports facility, convention centre and upcoming stadium would boost hotels, bars and restaurants as well as the construction sector.